Amber Group and Hashkey Capital criticize ZKX Protocol’s sudden cessation of operations, urging transparency and accountability.
Investors Slam ZKX Protocol’s Lack of Transparency
Amber Group, a digital finance firm and market maker, has criticized the decentralized perpetual trading platform ZKX for abruptly ceasing operations without prior warning. The decision has raised concerns among investors, service providers, and the wider community, setting a troubling precedent.
Hashkey Capital, another significant market participant, expressed dissatisfaction with ZKX’s lack of transparency and accountability, particularly regarding financial disclosures, fund allocation, and operational plans. Ye Su, founding partner at Arkstream Capital, also voiced discontent with ZKX founder Eduard Jubany Tur’s handling of the situation.
Amber Group Urges Constructive Action from ZKX Team
Amber Group’s statement, disseminated through X, emphasized the importance of transparency and accountability in the crypto industry. The firm believes that clear communication is crucial for fostering trust and collaboration within the crypto community.
We believe that clear communication and transparency are essential for fostering trust and collaboration within the crypto community. We hope that these principles will guide future projects and that the ZKX team will take the necessary actions and accountability to bring more transparency and address the situation constructively,” the Amber Group stated.
Reasons Behind ZKX’s Shutdown
Eduard Jubany Tur, ZKX’s founder, attributed the protocol’s shutdown to limited user engagement and low trading volumes, which impacted financial viability. He also mentioned that the token generation event (TGE) did not meet expectations, leading to financial losses. Despite these challenges, Tur reported facing threats, abuse, and hacking attempts instead of sympathy.
Amber Group’s Commitment to Transparency
Highlighting its commitment to transparency, Amber Group disclosed that it had acquired 2 million ZKX tokens from the open market. Additionally, the firm holds 1 million ZKX tokens provided as a loan to facilitate liquidity on the launch date, June 19. This brings Amber Group’s total holdings to 3 million tokens.
Investor Reactions
The abrupt cessation of ZKX operations and subsequent handling by the team have led to significant backlash from investors. Both Amber Group and Hashkey Capital stress the need for better communication and transparency to prevent similar issues in the future and to maintain trust within the crypto community.
Also Read other news articles, Mercado Libre Becomes Largest Latin American Company After Strong Q2 Results
Bitcoin Plunges Below $54,000 Amid Market Selloff and Election Uncertainty
JPMorgan Predicts Silver Prices to Surge to $36 per Ounce by 2025
